Saudi Arabia's stock index sees worst session in six weeks
May 21 (Reuters) - Saudi Arabia's benchmark stock index (.TASI), opens new tab logged its worst session in six weeks, ending the day 1.2% lower, while most other major Gulf markets also closed in the red, as investors worried about mounting fiscal pressures in major economies.
Moody's recent downgrade of the U.S. credit rating has shaken investor confidence, especially amid concerns that President Donald Trump's proposed tax cuts could add $3 trillion–$5 trillion to the existing $36 trillion debt. Persistent trade deadlocks and pressure from key partners to ease tariffs have only deepened the unease.
External pressures dampened regional market sentiment, with investors closely monitoring talks surrounding Trump's proposed tax cut bill, Joseph Dahrieh, Managing Principal at Tickmill said in a note.
Meanwhile, official data showed that Saudi Arabia's crude exports in March fell to 5.754 million barrels per day (bpd) from 6.547 million bpd in February. Oil prices rose more than 1% on Wednesday .
Both stock markets in UAE also settled lower, with Dubai's main share index (.DFMGI), opens new tab down 0.53% and Abu Dhabi's benchmark index (.FTFADGI), opens new tab 0.42% lower.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab extended gains to a second session, closing up 0.66%.
Egypt's central bank is expected to lower overnight interest rates by a median of 175 basis points on Thursday, a Reuters poll showed.
Market sentiment is being bolstered by growing optimism that the central bank may cut rates at its upcoming meeting, Dahrieh added.
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